India's forex reserves rise 3.3%, covering 12 months of imports
The Dollar Business Bureau According to RBI's half-yearly report, India's foreign exchange reserves increased from $360.2 billion at the end of March, 2016 to $372 billion at the end of September 2016, an improvement of 3.3%, leading to the import cover to increase to 12 months from 10.9 months in March 2016. Among the FCAs (Foreign Currency Assets), gold, SDRs (Special Drawing Rights) and RTP (Reserve Tranche Position), the major contribution in forex reserves comes from FCA. FCA reserves rose from $336 billion (March 2016) to $346.7 billion (September 2016), a 3.2% increase. Of the total FCA reserve, $229 billion was invested in securities, $95.7 billion was deposited with other central banks (BIS and the IMF) and remaining $22.0 billion was deposited with overseas branches of commercial ...
India needs $60 bn forex reserves to sustain global volatilities: Report
The Dollar Business Bureau Despite a steady growth, India needs additional $60 billion foreign exchange reserves (Forex) in order to stay sustained to global volatilities, said a global financial major, in its latest release. The latest HSBC report says that India’s forex reserves in 2015 are beyond traditional norms, however, the country’s experiences in recent times suggest $60 billion buffer could help the country face tight financial situation globally. "We estimate an additional $60 billion of reserves, taking overall holdings to $420 billion, could take care of key vulnerabilities (such as un-hedged external commercial debt, short-term external debt and portfolio outflows)," said India Chief Economist Pranjul Bhandari, in a research note. Even though India had lost $20 billion of forex reserves during ...
